There are a number of cab companies that hire freelance drivers to use their own transportation as a personal cab service. If you have been debating becoming a partner driver for one of these app based services, then you likely know you will need to have valid car insurance. Before you buy a simple liability auto insurance policy, you should consider a few key insurance points. Here are those points and how they pertain to you as a freelance cab partner driver.
Insurance Gaps
One of the first things you will learn about your car insurance as a freelance cab partner driver is the insurance gap that exists. Some of the companies, like Uber and Lyft, offer insurance for the passengers and yourself during the ride only. There are also special circumstances for this type of insurance that combine with your existing car insurance.
These circumstances and guidelines may leave gaps on different aspects of what auto insurance generally covers. One of the first things you need to consider about the car insurance you obtain is how it will work with the company you choose to partner with and how to fill the gaps between your choice and the company’s plan.
Coverage for Liability and Damages
You should consider the legal obligations you will have if an accident occurs. Your current insurance choice may not cover legal matters like being sued by the passenger for their injuries. You need to carefully consider insurance combinations that will cover you for as much of the passengers’ medical bills as possible. If there is an issue, this will show the courts that you did attempt to make every endeavour to cover the passenger’s expenses. It won’t protect you from being sued, but it will give you a better leg to stand on.
Driving for Hire
One thing you may not consider when you buy your insurance policy, or upgrade it, is your status change as a driver. When you move from driving to school or work to driving others for an income, you actually become a driver for hire. This means that you are using your vehicle for work, which may change how your coverage works, how much it costs, and what coverage you can obtain. Make sure that you inform your insurance company that you are a driver for hire so they can help you with the correct policy.
The key point to remember when you are shopping for insurance as a driver for hire or as a partner driver is to be honest and upfront with your insurance representative. Go in person and discuss your options directly at a company like United Security Agency. They will be able to help you and help you keep your costs as low as possible while insuring you for what you need.
Insurance Gaps
One of the first things you will learn about your car insurance as a freelance cab partner driver is the insurance gap that exists. Some of the companies, like Uber and Lyft, offer insurance for the passengers and yourself during the ride only. There are also special circumstances for this type of insurance that combine with your existing car insurance.
These circumstances and guidelines may leave gaps on different aspects of what auto insurance generally covers. One of the first things you need to consider about the car insurance you obtain is how it will work with the company you choose to partner with and how to fill the gaps between your choice and the company’s plan.
Coverage for Liability and Damages
You should consider the legal obligations you will have if an accident occurs. Your current insurance choice may not cover legal matters like being sued by the passenger for their injuries. You need to carefully consider insurance combinations that will cover you for as much of the passengers’ medical bills as possible. If there is an issue, this will show the courts that you did attempt to make every endeavour to cover the passenger’s expenses. It won’t protect you from being sued, but it will give you a better leg to stand on.
Driving for Hire
One thing you may not consider when you buy your insurance policy, or upgrade it, is your status change as a driver. When you move from driving to school or work to driving others for an income, you actually become a driver for hire. This means that you are using your vehicle for work, which may change how your coverage works, how much it costs, and what coverage you can obtain. Make sure that you inform your insurance company that you are a driver for hire so they can help you with the correct policy.
The key point to remember when you are shopping for insurance as a driver for hire or as a partner driver is to be honest and upfront with your insurance representative. Go in person and discuss your options directly at a company like United Security Agency. They will be able to help you and help you keep your costs as low as possible while insuring you for what you need.
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